Even as broad market sentiment remained marginally positive in the afternoon trades, Lloyd Electric & Engineering shares witnessed frenzied selling since early trades amid reports the company is likely to sell its consumer durable business to Havells India for Rs 1,600 crore.

After opening marginally positive at the opening bell, Lloyd Electric shares plunged deep into the red to touch a low of Rs 278.15, down 15 percent from previous close.

At 1.05 PM, Lloyd Electric shares was trading at Rs 283.40, down nearly 14 pecent from previous close of Rs 327.85.

Nearly 10 lakh shares have changed on BSE so far as against two week average volume of just 69,000 shares traded.

Similarly, shares of Havells India, too, exhibited negative sentiment, but the fall was limited as compared with Lloyd Electric shares.

Havells India shares was down 2.8 percent at Rs 414 after touching a low of Rs 410.75. Over 2 lakh shares changed hands on BSE.

The electrical goods company Havells on Sunday said it will acquire consumer durable business of Lloyd Electric & Engineering for about Rs 1,600 crore.

"...(Havells)board has approved the acquisition of Lloyd Consumer Durable Business Division (Lloyd Consumer). The acquisition is proposed to be executed at an enterprise value of Rs 1,600 crores on a debt free, cash free basis subject to closing adjustments," the company said in a statement.

This acquisition, when completed, will mark Havells foray into consumer durables industry.

The transaction is subject to confirmatory due diligence and is expected to close in next eight weeks. The company plans to finance the transaction through a mix of debt and internal accruals, the statement said.

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The proposed acquisition is in line with Havells objective of Deeper into Homes, driving domestic expansion and owning a brand and distribution-oriented asset. "We would leverage and extend the trust associated with brand Havells to consumers, dealers, vendors of Lloyd and create a similar recognition in consumer durables segment," Havells India Chairman & Managing Director Anil Rai Gupta said.

The company said that it will completely acquire the consumer business of Lloyd.

The company has signed an agreement with Lloyd Electrical and Engineering Limited and Fedders Lloyd Corporation Limited for acquiring Lloyd brand and the consumer durable business. The consumer business of Lloyd is engaged in sourcing, assembling, marketing and distribution of consumer durables including air-conditioners, TVs, washing machines and other household appliances, it added.

Havells will acquire the consumer business infrastructure, people, distribution network including and not limited to absolute, exclusive ownership and right to all intellectual property of brand Lloyd, logo, trademark, goodwill and attendant rights.

The proforma revenues of consumer durable arm, Lloyd Consumer for 9-months ended 31 December, 2016 stood at Rs 1,242 crores and EBDITA of Rs 75 crores. Based on its run rate and past performance, full year revenue is estimated at Rs 1,850 crores with proforma EBDITA of Rs 110 crores, the statement said.

"Through this acquisition, Havells would mark a foray into consumer durables industry currently estimated at US dollar five billion and growing in double digits with low penetration levels, increasing urbanisation, aspirational and expanding middle class," the statement said.

Lloyd, which is among the top three brands in air-conditioner category, has expanded into TVs and Washing machines as well.

Standard Chartered Bank was the financial advisor and AZB & Partners were the legal advisors to the transaction. EY represented sellers as their financial advisor, the statement said. P